Vegetable oil cess applies to expeller-extracted cottonseed oil; limitation objection remanded for fresh adjudication.

Cottonseed oil extracted by the expeller method falls within the statutory definition of "vegetable oil" for cess under the Vegetable Oils Cess Act, 1983, because oil produced from oilseeds or other plant-origin oil-bearing material is covered unless it has undergone further processing after recovery. The attempted distinction between oil "produced" and oil "recovered" was rejected, and the captive-consumption exemption under Rule 9 was found inapplicable on the facts. A limitation objection raised for the first time before the Tribunal, without findings by the lower authorities, required factual examination at the adjudication stage and was remanded for fresh decision after hearing the assessees.

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Issues: (i) Whether cottonseed oil extracted by the expeller method is "vegetable oil" exigible to cess under the Vegetable Oils Cess Act, 1983. (ii) Whether the demands raised for part of the period were barred by limitation and required fresh adjudication.

Issue (i): Whether cottonseed oil extracted by the expeller method is "vegetable oil" exigible to cess under the Vegetable Oils Cess Act, 1983.

Analysis: The charging provision levies cess on vegetable oils produced in any mill, and the expression "vegetable oil" is controlled by the definition in the National Oilseeds and Vegetable Oils Development Board Act, 1983. That definition covers oil produced from oilseeds or other plant-origin oil-bearing material and excludes only oil subjected to further processing after recovery. The distinction sought to be drawn between "produced" and "recovered" was rejected, and the exemption for captive consumption under Rule 9 was held inapplicable on the facts.

Conclusion: Cottonseed oil extracted by the expeller method is vegetable oil and is liable to cess.

Issue (ii): Whether the demands raised for part of the period were barred by limitation and required fresh adjudication.

Analysis: The limitation plea was raised for the first time before the Tribunal, and there were no findings by the lower authorities on that question. The matter therefore required factual examination at the adjudication stage, with an opportunity of hearing to the assessees.

Conclusion: The limitation issue was remanded for fresh adjudication.

Final Conclusion: The levy of cess on cottonseed oil extracted by the expeller method was upheld, while the limitation question was sent back for decision afresh.

Ratio Decidendi: Oil extracted from oilseeds by the expeller method falls within the statutory definition of vegetable oil unless it has undergone further processing after recovery, and a limitation plea not examined by the lower authorities may be remanded for fresh determination.

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